Blake Freeman – regional president, Huntsville, Ala. – joins SouthState from ServisFirst Bank where he worked since 2013. While there, he managed a diverse portfolio of commercial and industrial clients, government contractors, residential development and home construction, and large construction efforts including multi-family and hospitality development. Freeman is a graduate of Leadership Huntsville/Madison County's Flagship Class 35, Connect Class 21, and Focus Class 36. Freeman graduated from Auburn Uni ...

Investors might want to bet on SouthState (SSB) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual inv ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-12669 SOUTHSTATE CORPORATION (Exact name of registrant as specified in its charter) South Carolina 57-0799315 ( ...

Core Insights - SouthState Corporation (SSB) reported second-quarter 2025 adjusted earnings per share of $2.30, exceeding the Zacks Consensus Estimate of $2.00, and reflecting a 28.5% increase year over year [1][7] - Net income attributable to common shareholders was $215.2 million, up 62.6% year over year [1] Revenue and Expenses - Total revenues for the quarter reached $664.8 million, marking a 56.2% increase year over year and surpassing the Zacks Consensus Estimate by 3.9% [2] - Net interest income (NII) was $577.9 million, up 65% from the prior-year quarter, with the net interest margin rising to 4.02% from 3.44% [2] - Non-interest income was $86.8 million, reflecting a 15.4% increase year over year, driven by most components except for other income and net securities losses [2] - Non-interest expenses surged by 50.8% to $375.1 million, primarily due to merger, branch consolidation, severance-related, and other restructuring expenses [3] Loans and Deposits - As of June 30, 2025, net loans stood at $46.6 billion, up 1.1% from the prior quarter, while total deposits were $53.7 billion, showing a marginal increase [4] Asset Quality - Provision for credit losses was $7.5 million, a significant increase of 92.9% from the prior-year quarter [5] - Allowance for credit losses as a percentage of loans was 1.31%, down 11 basis points year over year [5] - The ratio of annualized net charge-offs to total average loans was 0.21%, up from 0.05% in the year-ago quarter [5] - Non-performing loans to total loans were 0.63%, an increase of 4 basis points from the prior-year quarter [5] Capital Ratios and Profitability Ratios - As of June 30, 2025, the Tier I leverage ratio was 9.2%, down from 9.7% in the year-ago quarter [6] - The Tier 1 common equity ratio decreased to 11.2% from 12.1% in the prior-year quarter [6] - The annualized return on average assets was 1.34%, up from 1.17% in the year-ago period [6] - Return on average common equity was 9.93%, compared to 9.58% in the prior-year quarter [6] Capital Distribution - The company increased its quarterly cash dividend on common stock by 11.1% to 60 cents per share, payable on August 15, 2025, to shareholders of record as of August 8, 2025 [8] Overall Assessment - SSB ended the second quarter positively, with both top and bottom lines rising year over year, supported by increasing NII and non-interest income [9] - Rising loan and deposit balances are encouraging, although high expenses from inorganic expansion efforts may pressure the bottom line [9]

Financial Data and Key Metrics Changes - The bank's earnings accelerated as forecasted, with a significant increase in loan production from approximately $2 billion in Q1 to over $3 billion in Q2, representing a 57% increase [6][11] - Adjusted for merger costs, the return on assets was 1.45% and return on tangible common equity was nearly 20% [9][11] - Net interest income grew by $33 million over Q1, with a cost of deposits at 1.84%, a five basis point improvement from Q1 [12][13] - Non-interest income remained stable at $87 million, with an efficiency ratio of 49.1% [14][15] - Tangible book value per share increased by 8.5% year-over-year to $51.96 [16] Business Line Data and Key Metrics Changes - Loan production in Texas and Colorado increased by 35%, with non-PCD loans growing by about $200 million [6][9] - The bank's retail bank ranks in the top quartile of J.D. Power's Net Promoter Score, indicating a superior customer experience [10] Market Data and Key Metrics Changes - The bank is now established in the fastest-growing markets in the country, specifically Texas and Colorado [8][9] - The loan pipeline increased significantly, with a 45% increase in Q1 and an additional 31% in Q2 [30] Company Strategy and Development Direction - The company aims to build a strong presence in the best geographical areas with a focus on organic growth and shareholder value [7][8] - The management is focused on leveraging the successful integration of Independent Financial to enhance growth opportunities [11][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving yield curve and its potential to accelerate organic growth [11] - The bank's capital position is strong, allowing for an 11% increase in dividends and potential share repurchases [16][85] Other Important Information - The bank's asset quality remains stable, with low credit costs and strong loss absorption capacity [15][16] - The management highlighted the importance of recruiting talent, having added 47 revenue producers in Q2 [50][66] Q&A Session Summary Question: Outlook for margin and deposit costs - Management indicated strong net interest margin performance and expects deposit costs to remain manageable despite growth [20][34] Question: Loan growth and paydowns - Paydowns returned to normal levels in Q2, and management expects continued loan origination funding [36] Question: Interest rate sensitivity - The bank expects a one to two basis point improvement in overall margin for every 25 basis point cut in rates [40] Question: Regulatory environment and growth - Management believes they have time to build infrastructure before facing regulatory changes, with a focus on organic growth [54] Question: Expense outlook and revenue synergies - Management confirmed no change to prior expense guidance and noted positive retention of key talent post-merger [58][65]

Financial Data and Key Metrics Changes - The bank's earnings accelerated as forecasted, with a significant increase in loan production from approximately $2 billion in Q1 to over $3 billion in Q2, representing a 57% increase [5] - Adjusted for merger costs, the return on assets was 1.45% and return on tangible common equity was nearly 20% in Q2 [7][9] - The tangible book value per share increased by 8.5% year-over-year to $51.96, despite the dilutive impacts of the merger [14] Business Line Data and Key Metrics Changes - Loan production in Texas and Colorado increased by 35%, with non-PCD loans growing by about $200 million [5] - Net interest income grew by $33 million over Q1, with a cost of deposits improving to 1.84%, a five basis point improvement [10] - Non-interest income remained stable at $87 million, with improvements in correspondent business offset by a slight decline in mortgage revenue [12] Market Data and Key Metrics Changes - The loan pipeline increased significantly, with a 45% increase in Q1 and an additional 31% in Q2, indicating strong momentum in loan origination [29] - The bank's asset size reached $66 billion, positioning it well for investments in technology and risk management [6] Company Strategy and Development Direction - The company aims to build a strong presence in the fastest-growing markets by focusing on Texas and Colorado, which are seen as key geographies for growth [6] - The management emphasized the importance of organic growth and the potential for share repurchases, given the current capital position [14][85] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving yield curve and its potential to accelerate organic growth [9] - The outlook for net interest margin (NIM) is expected to remain between 3.8% and 3.9% for the remainder of the year, with potential for improvement in 2026 [24] Other Important Information - The board approved an 11% increase in dividends, reflecting confidence in earnings growth and capital levels [9][84] - The integration of Independent Financial was completed successfully, allowing the company to focus on growth opportunities [6] Q&A Session Summary Question: Outlook for margin and potential for expansion - Management indicated that the net interest margin was strong at 4.02% and expects it to remain stable with no significant changes to guidance [20][22] Question: Loan growth and paydowns - Paydowns returned to normal levels in Q2, and the company is funding around 60% of loan production, indicating potential for future growth [36] Question: Interest rate sensitivity and NIM guidance - Management expects a 1-2 basis point improvement in overall margin for every 25 basis point cut, with a focus on legacy loan repricing [39][41] Question: Capital allocation and buyback opportunities - The company is considering share repurchases due to its strong capital position and believes in the potential for consistent dividend increases [84][86]

Financial Performance - SouthState Corporation reported diluted Earnings per Share (EPS) of $2.11, with an adjusted diluted EPS (non-GAAP) of $2.30[32] - Pre-Provision Net Revenue (PPNR) reached $314.1 million[32] - Year-over-year PPNR per share growth (non-GAAP) was 29%[32] - Net interest margin, tax equivalent, increased to 4.02%, up 0.17% from the prior quarter[32] Balance Sheet & Loan Portfolio - Loans increased by $501 million, representing a 4% annualized growth[32] - Deposits increased by $359 million, representing a 3% annualized growth[32] - Total loans amounted to $47.3 billion, with investor CRE comprising 36% of the portfolio[44] - Noninterest-bearing checking deposits totaled $13.7 billion[48] Asset Quality & Capital - Net charge-offs to loans stood at 0.06%[54] - Tangible Common Equity (TCE) ratio was 8.5%[63] - Total investment portfolio was $8.1 billion[78] Market & Geographic Expansion - SouthState is ranked as the 5 largest regional bank in the South[7] - The company operates in 12 of the 15 fastest-growing U S MSAs[7] - Top states for net domestic migration include Florida with 872,722 and Texas with 747,730[23]

Core Insights - SouthState (SSB) reported a revenue of $664.77 million for the quarter ended June 2025, marking a 56.2% increase year-over-year and exceeding the Zacks Consensus Estimate by 3.96% [1] - The earnings per share (EPS) for the quarter was $2.30, up from $1.79 in the same quarter last year, representing a 15% surprise over the consensus EPS estimate of $2.00 [1] Financial Performance Metrics - Net charge-offs as a percentage of average loans were 0.2%, higher than the average estimate of 0.1% [4] - The efficiency ratio stood at 52.8%, better than the average estimate of 55.6% [4] - Net interest margin (non-tax equivalent) was reported at 4%, exceeding the average estimate of 3.8% [4] - Average balance of total interest-earning assets was $57.71 billion, slightly below the average estimate of $57.91 billion [4] - Total nonperforming assets amounted to $323.84 million, higher than the average estimate of $277.62 million [4] - Net interest income (tax equivalent, non-GAAP) was $578.62 million, surpassing the average estimate of $552.04 million [4] - Total noninterest income was $86.82 million, slightly below the average estimate of $87.97 million [4] - Net interest income was reported at $577.95 million, compared to the average estimate of $551.17 million [4] - Mortgage banking income was $5.94 million, lower than the average estimate of $8.56 million [4] - Fees on deposit accounts reached $37.87 million, exceeding the average estimate of $36.44 million [4] - Trust and investment services income was $14.42 million, slightly above the average estimate of $14 million [4] - Total correspondent banking and capital market income was $13.77 million, higher than the average estimate of $10.99 million [4] Stock Performance - SouthState shares have returned +9.4% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - SouthState reported quarterly earnings of $2.3 per share, exceeding the Zacks Consensus Estimate of $2 per share, and showing an increase from $1.79 per share a year ago, resulting in an earnings surprise of +15.00% [1] - The company achieved revenues of $664.77 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.96%, and up from $425.48 million year-over-year [2] - SouthState has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed the market, losing about 2.3% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $2.05 on revenues of $652.67 million, and for the current fiscal year, it is $8.13 on revenues of $2.59 billion [7] 分组3 - The Zacks Industry Rank places Financial - Miscellaneous Services in the top 38% of over 250 Zacks industries, indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - The estimate revisions trend for SouthState was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) SouthState reported accelerated growth in Q2 2025, with significant increases in revenue and loan originations, strong financial performance, and an 11% dividend increase, alongside robust capital and asset quality [CEO Statement](index=1&type=section&id=CEO%20Statement) SouthState's CEO, John C. Corbett, highlighted accelerated growth in Q2 2025, with annualized revenue growth of 22% and a 57% quarter-over-quarter increase in loan originations. The successful conversion of the IBTX franchise and strong returns enabled an 11% dividend increase and funded organic growth - Growth accelerated in Q2 2025, with **annualized revenue growth of 22%** and **loan originations up 57% QoQ**[3](index=3&type=chunk) - Successfully completed the conversion of the IBTX franchise[3](index=3&type=chunk) - **Increased quarterly cash dividend by 11% to $0.60 per share**, payable August 15, 2025[3](index=3&type=chunk)[6](index=6&type=chunk) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The second quarter of 2025 saw strong financial performance with diluted EPS of $2.11 ($2.30 adjusted), net income of $215.2 million ($233.8 million adjusted), and robust returns on equity and assets. The company also reported significant loan and deposit growth, improved net interest margin, and a strong capital position Key Financial Performance Indicators (Q2 2025) | Indicator | Value (GAAP) | Value (Adjusted Non-GAAP) | | :----------------------------------- | :----------- | :------------------------ | | Diluted EPS | $2.11 | $2.30 | | Net Income | $215.2 million | $233.8 million | | Return on Average Common Equity | 9.9% | 10.79% (Adjusted) | | Return on Average Tangible Common Equity | 18.2% | 19.6% (Adjusted) | | Return on Average Assets (ROAA) | 1.34% | 1.45% | | Net Interest Income | $578 million | N/A | | Net Interest Margin (NIM) | 4.02% | 4.02% (Tax Equivalent) | | Efficiency Ratio | 53% | 49% | | Book Value per Share | $86.71 | N/A | | Tangible Book Value (TBV) per Share | N/A | $51.96 | | Net Charge-offs (excl. acquisition date) | 0.06% (annualized) | N/A | | Provision for Credit Losses (PCL) | $7.5 million | N/A | | Allowance for Credit Losses (ACL) + UFC | 1.45% of loans | N/A | | Noninterest Income | $87 million | N/A | | Total Loan Yield | 6.33% | N/A | | Total Deposit Cost | 1.84% | N/A | - **Loans increased by $501 million** (4% annualized) and **deposits increased by $359 million** (3% annualized) in Q2 2025, resulting in an **ending loan to deposit ratio of 88%**[6](index=6&type=chunk) - **Total loan yield increased by 0.08% to 6.33%**, while **total deposit cost decreased by 0.05% to 1.84%**[6](index=6&type=chunk) - Completed the issuance of **$350 million** aggregate principal amount of **7% fixed-to-floating rate subordinated notes**[6](index=6&type=chunk) Preliminary Capital Ratios (Q2 2025) | Capital Ratio | Value | | :-------------------------- | :---- | | Tangible Common Equity | 8.5% | | Total Risk-Based Capital | 14.5% | | Tier 1 Leverage | 9.2% | | Tier 1 Common Equity | 11.2% | [Financial Performance](index=2&type=section&id=Financial%20Performance) Q2 2025 saw a substantial increase in net income and improved performance ratios, including a higher return on average assets and common equity, while maintaining strong capital ratios [Income Statement](index=2&type=section&id=Income%20Statement) The income statement for Q2 2025 shows a significant increase in net income to $215.2 million, up from $89.08 million in Q1 2025, driven by higher net interest income and lower provision for credit losses. Adjusted net income also saw a substantial rise Income Statement Highlights (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | | :--------------------------------------- | :------------ | :------------ | :------------ | | Total Interest Income | $840,504 | $808,566 | $531,124 | | Total Interest Expense | $262,556 | $264,019 | $180,865 | | Net Interest Income | $577,948 | $544,547 | $350,259 | | Provision for Credit Losses | $7,505 | $100,562 | $3,889 | | Total Noninterest Income | $86,817 | $86,088 | $75,225 | | Total Noninterest Expense | $375,061 | $408,826 | $248,747 | | Net Income (GAAP) | $215,224 | $89,080 | $132,370 | | Adjusted Net Income (non-GAAP) | $233,817 | $219,282 | $137,274 | | Diluted EPS (GAAP) | $2.11 | $0.87 | $1.73 | | Adjusted Diluted EPS (non-GAAP) | $2.30 | $2.15 | $1.79 | | Dividends per Common Share | $0.54 | $0.54 | $0.52 | - **Net Interest Income increased by 6.1% QoQ to $577.9 million** in Q2 2025, and significantly from $350.2 million in Q2 2024[7](index=7&type=chunk) - **Provision for Credit Losses decreased substantially from $100.5 million to $7.5 million** in Q2 2025[7](index=7&type=chunk) [Performance and Capital Ratios](index=3&type=section&id=Performance%20and%20Capital%20Ratios) Performance ratios showed strong improvement in Q2 2025, with annualized return on average assets increasing to 1.34% (1.45% adjusted) and return on average common equity reaching 9.93% (10.79% adjusted). Capital ratios remained robust, with total risk-based capital at 14.5% Key Performance and Capital Ratios (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Ratio | Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | | Return on average assets (annualized) | 1.34 % | 0.56 % | 1.17 % | | Adjusted return on average assets (annualized) | 1.45 % | 1.38 % | 1.22 % | | Return on average common equity (annualized) | 9.93 % | 4.29 % | 9.58 % | | Adjusted return on average common equity (annualized) | 10.79 % | 10.56 % | 9.94 % | | Return on average tangible common equity (annualized) | 18.17 % | 8.99 % | 15.49 % | | Adjusted return on average tangible common equity (annualized) | 19.61 % | 19.85 % | 16.05 % | | Efficiency ratio (tax equivalent) | 52.75 % | 60.97 % | 57.03 % | | Adjusted efficiency ratio | 49.09 % | 50.24 % | 55.52 % | | Book value per common share | $86.71 | $84.99 | $74.16 | | Tangible book value per common share | $51.96 | $50.07 | $47.90 | | Equity-to-assets | 13.4 % | 13.2 % | 12.4 % | | Tangible equity-to-tangible assets | 8.5 % | 8.2 % | 8.4 % | | Tier 1 leverage | 9.2 % | 8.9 % | 9.7 % | | Total risk-based capital | 14.5 % | 13.7 % | 14.4 % | - **The efficiency ratio improved significantly to 52.75% (49.09% adjusted)** in Q2 2025 from 60.97% (50.24% adjusted) in Q1 2025[9](index=9&type=chunk) [Balance Sheet](index=4&type=section&id=Balance%20Sheet) Total assets grew to $65.89 billion in Q2 2025, driven by increases in cash, investments, and loans, with total deposits also rising to $53.70 billion and shareholders' equity strengthening [Balance Sheet Details](index=4&type=section&id=Balance%20Sheet%20Details) SouthState's total assets grew to $65.89 billion as of June 30, 2025, up from $65.14 billion in the prior quarter. This growth was primarily driven by increases in cash and cash equivalents, and loans, net. Total deposits also increased to $53.70 billion Balance Sheet Summary (Ending Balance) | Asset/Liability | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | | :------------------------------------ | :------------ | :------------ | :------------ | :------------ | | Cash and cash equivalents | $3,464,106 | $3,299,690 | $1,392,067 | $1,117,166 | | Total investment securities | $8,431,345 | $8,395,044 | $6,798,876 | $7,048,308 | | Loans, net | $46,646,201 | $46,143,042 | $33,437,647 | $32,762,266 | | Goodwill | $3,094,059 | $3,088,059 | $1,923,106 | $1,923,106 | | Total assets | $65,893,322 | $65,135,454 | $46,381,204 | $45,493,970 | | Total deposits | $53,696,961 | $53,337,615 | $38,060,866 | $37,098,402 | | Total liabilities | $57,092,188 | $56,511,093 | $40,490,789 | $39,843,567 | | Total shareholders' equity | $8,801,134 | $8,624,361 | $5,890,415 | $5,650,403 | - **Total assets increased by approximately $757.9 million QoQ**, reflecting growth across various asset categories[10](index=10&type=chunk) - **Shareholders' equity increased to $8.80 billion from $8.62 billion** in the previous quarter[10](index=10&type=chunk) [Net Interest Income and Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income and margin improved in Q2 2025, with the net interest margin rising to 4.02%, primarily due to increased yield on interest-earning assets and a slight decrease in total deposit cost [Yield Analysis](index=5&type=section&id=Yield%20Analysis) SouthState's net interest income and margin improved in Q2 2025, with the net interest margin (non-tax equivalent) rising to 4.02% from 3.84% in Q1 2025. This was driven by an increase in the yield on interest-earning assets, particularly loans, while the total deposit cost slightly decreased Net Interest Income and Margin Analysis (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | | :------------------------------------------ | :------------ | :------------ | :------------ | | Average Interest-Earning Assets | $57,710,001 | $57,497,453 | $41,011,662 | | Total Interest Income | $840,504 | $808,566 | $531,124 | | Yield on Interest-Earning Assets | 5.84% | 5.70% | 5.21% | | Average Interest-Bearing Liabilities (IBL) | $40,555,703 | $40,753,004 | $27,701,439 | | Total Interest Expense | $262,556 | $264,019 | $180,865 | | Rate on IBL | 2.60% | 2.63% | 2.63% | | Net Interest Income (Non-Tax Equivalent) | $577,948 | $544,547 | $350,259 | | Net Interest Margin (Non-Tax Equivalent) | 4.02% | 3.84% | 3.43% | | Total Deposit Cost | 1.84% | 1.89% | 1.80% | | Overall Cost of Funds | 1.94% | 1.97% | 1.90% | - **Yield on total loans held for investment increased to 6.33%** in Q2 2025 from 6.25% in Q1 2025[11](index=11&type=chunk) - **Total accretion on acquired loans was $63.5 million** in Q2 2025, contributing to loan interest income[11](index=11&type=chunk)[28](index=28&type=chunk) [Noninterest Income and Expense](index=6&type=section&id=Noninterest%20Income%20and%20Expense) Noninterest income remained stable at $86.8 million in Q2 2025, while noninterest expense decreased significantly due to reduced merger and consolidation-related costs, improving the efficiency ratio [Noninterest Income](index=6&type=section&id=Noninterest%20Income) Total noninterest income remained stable at $86.8 million in Q2 2025, slightly up from $86.09 million in Q1 2025. Key contributors included fees on deposit accounts, trust and investment services income, and correspondent banking and capital markets income Noninterest Income Breakdown (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Category | Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | | :---------------------------------------- | :------------ | :------------ | :------------ | | Fees on deposit accounts | $37,869 | $35,933 | $33,842 | | Mortgage banking income | $5,936 | $7,737 | $5,912 | | Trust and investment services income | $14,419 | $14,932 | $11,091 | | Correspondent banking and capital markets income | $13,767 | $9,545 | $4,860 | | Bank owned life insurance income | $9,153 | $10,199 | $7,372 | | Total Noninterest Income | $86,817 | $86,088 | $75,225 | - **Correspondent banking and capital markets income saw a significant increase to $13.77 million** in Q2 2025 from $9.55 million in Q1 2025[13](index=13&type=chunk) [Noninterest Expense](index=6&type=section&id=Noninterest%20Expense) Total noninterest expense decreased to $375.06 million in Q2 2025 from $408.83 million in Q1 2025, primarily due to a reduction in merger, branch consolidation, severance related and other expenses Noninterest Expense Breakdown (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Category | Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | | Salaries and employee benefits | $200,162 | $195,811 | $151,435 | | Occupancy expense | $41,507 | $35,493 | $22,453 | | Information services expense | $30,155 | $31,362 | $23,144 | | Amortization of intangibles | $24,048 | $23,831 | $5,744 | | Merger, branch consolidation, severance related and other expense | $24,379 | $68,006 | $5,785 | | Total Noninterest Expense | $375,061 | $408,826 | $248,747 | - **Merger, branch consolidation, severance related and other expenses significantly decreased to $24.38 million** in Q2 2025 from $68.01 million in Q1 2025[13](index=13&type=chunk) - **Amortization of intangibles increased substantially year-over-year, reaching $24.05 million** in Q2 2025 compared to $5.74 million in Q2 2024[13](index=13&type=chunk) [Loans and Deposits](index=7&type=section&id=Loans%20and%20Deposits) The total loan portfolio expanded to $47.27 billion in Q2 2025, with growth in investor commercial real estate and commercial and industrial loans, while total deposits increased to $53.70 billion, driven by time deposits [Loan Portfolio Summary](index=7&type=section&id=Loan%20Portfolio%20Summary) The total loan portfolio grew to $47.27 billion as of June 30, 2025, an increase from $46.77 billion in the previous quarter. Growth was observed across most loan categories, with investor commercial real estate and commercial and industrial loans being significant contributors Loan Portfolio by Type (Ending Balance) | Loan Type | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | :------------ | | Construction and land development | $3,323,923 | $3,497,909 | $2,184,327 | $2,592,307 | | Investor commercial real estate | $16,953,410 | $16,822,119 | $9,991,482 | $9,731,773 | | Commercial owner occupied real estate | $7,497,906 | $7,417,116 | $5,716,376 | $5,522,978 | | Commercial and industrial | $8,445,878 | $8,106,484 | $6,222,876 | $5,769,838 | | Consumer real estate | $10,038,369 | $9,838,952 | $8,714,969 | $8,440,724 | | Consumer/other | $1,007,761 | $1,084,152 | $1,072,897 | $1,176,944 | | Total Loans | $47,267,247 | $46,766,732 | $33,902,927 | $33,234,564 | - **Investor commercial real estate loans increased by $131.29 million QoQ**, and **commercial and industrial loans increased by $339.39 million QoQ**[14](index=14&type=chunk) [Deposit Summary](index=7&type=section&id=Deposit%20Summary) Total deposits increased to $53.70 billion as of June 30, 2025, up from $53.34 billion in the prior quarter. Time deposits showed notable growth, while noninterest-bearing checking deposits remained relatively stable Deposits by Type (Ending Balance) | Deposit Type | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | | :-------------------------- | :------------ | :------------ | :------------ | :------------ | | Noninterest-bearing checking | $13,719,030 | $13,757,255 | $10,192,116 | $10,374,464 | | Interest-bearing checking | $12,607,205 | $12,034,973 | $8,232,322 | $7,547,406 | | Savings | $2,889,670 | $2,939,407 | $2,414,172 | $2,475,130 | | Money market | $16,772,597 | $17,447,738 | $13,056,534 | $12,122,336 | | Time deposits | $7,708,459 | $7,158,242 | $4,165,722 | $4,579,066 | | Total Deposits | $53,696,961 | $53,337,615 | $38,060,866 | $37,098,402 | | Core Deposits (excl. Time Deposits) | $45,988,502 | $46,179,373 | $33,895,144 | $32,519,336 | - **Time deposits increased by $550.2 million QoQ**, indicating a shift in deposit mix[16](index=16&type=chunk) - **Core deposits (excluding time deposits) slightly decreased QoQ to $45.99 billion from $46.18 billion**[16](index=16&type=chunk) [Asset Quality](index=8&type=section&id=Asset%20Quality) Total nonperforming assets increased to $323.8 million in Q2 2025, mainly due to acquired nonaccrual loans, while asset quality ratios showed a slight increase in net charge-offs and a stable allowance for credit losses [Nonperforming Assets](index=8&type=section&id=Nonperforming%20Assets) Total nonperforming assets increased to $323.84 million as of June 30, 2025, from $280.44 million in the prior quarter, primarily driven by an increase in acquired nonaccrual loans Nonperforming Assets (Ending Balance) | Category | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | | Non-acquired nonaccrual loans and restructured loans | $141,910 | $151,673 | $141,982 | $110,774 | | Non-acquired OREO and other nonperforming assets | $17,288 | $2,290 | $1,182 | $2,876 | | Acquired nonaccrual loans and restructured loans | $151,466 | $116,691 | $65,314 | $78,287 | | Acquired OREO and other nonperforming assets | $8,783 | $5,976 | $1,583 | $598 | | Total nonperforming assets | $323,841 | $280,440 | $213,354 | $199,294 | - **Acquired nonaccrual loans increased by $34.78 million QoQ**, contributing to the rise in total nonperforming assets[17](index=17&type=chunk) [Asset Quality Ratios](index=8&type=section&id=Asset%20Quality%20Ratios) Asset quality ratios showed a slight increase in net charge-offs as a percentage of average loans (excluding acquisition date charge-offs) to 0.06% in Q2 2025. Total nonperforming assets as a percentage of total assets also increased to 0.49% Asset Quality Ratios | Ratio | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Jun. 30, 2024 | | :-------------------------------------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | | Allowance for credit losses as a percentage of loans | 1.31% | 1.33% | 1.37% | 1.42% | | Allowance for credit losses, including reserve for unfunded commitments, as a percentage of loans | 1.45% | 1.47% | 1.51% | 1.57% | | Allowance for credit losses as a percentage of nonperforming loans | 208.57% | 229.15% | 220.94% | 241.19% | | Net charge-offs as a percentage of average loans (annualized) | 0.21% | 0.38% | 0.06% | 0.05% | | Net charge-offs, excluding acquisition date charge-offs, as a percentage of average loans (annualized) | 0.06% | 0.04% | 0.06% | 0.05% | | Total nonperforming assets as a percentage of total assets | 0.49% | 0.43% | 0.46% | 0.44% | | Nonperforming loans as a percentage of period end loans | 0.63% | 0.58% | 0.62% | 0.59% | - **Allowance for credit losses as a percentage of loans slightly decreased to 1.31% from 1.33% QoQ**[17](index=17&type=chunk) [Current Expected Credit Losses (CECL)](index=8&type=section&id=Current%20Expected%20Credit%20Losses%20%28CECL%29) The Allowance for Credit Losses (ACL) for non-PCD loans increased, while PCD ACL decreased, resulting in a total ACL of $621.05 million as of June 30, 2025. The provision for credit losses for the quarter was $5.06 million ACL and UFC Roll Forward (Q2 2025) | Category | Non-PCD ACL | PCD ACL | Total ACL | UFC | | :------------------------------------------------- | :---------- | :-------- | :-------- | :---- | | Ending balance 3/31/2025 | $526,615 | $97,075 | $623,690 | $62,253 | | ACL - PCD loans from Independent | — | $16,798 | $16,798 | — | | Acquisition date charge-offs on acquired PCD loans | — | $(17,259) | $(17,259) | — | | Charge offs | $(11,736) | — | $(11,736) | — | | Recoveries | $2,174 | — | $2,174 | — | | Provision for credit losses | $17,582 | $(12,518) | $5,064 | $2,440 | | Ending balance 6/30/2025 | $535,014 | $86,032 | $621,046 | $64,693 | | Allowance for Credit Losses to Loans | 1.22% | 2.52% | 1.31% | N/A | - **Acquisition date charge-offs on acquired PCD loans from Independent totaled $17.26 million** in Q2 2025, recorded to align with company policies[18](index=18&type=chunk)[19](index=19&type=chunk) [Company Information](index=9&type=section&id=Company%20Information) SouthState Corporation, headquartered in Winter Haven, Florida, is a financial services company offering diverse solutions across multiple states and will host a conference call on July 25, 2025, to discuss its Q2 results [Conference Call Details](index=9&type=section&id=Conference%20Call%20Details) SouthState Corporation will host a conference call on July 25, 2025, at 9:00 a.m. Eastern Time to discuss its second-quarter results, with details provided for participation via phone or webcast - **Conference call to discuss Q2 results scheduled for July 25, 2025, at 9:00 a.m. ET**[21](index=21&type=chunk) - Access available via toll-free number (888) 350-3899 (US) or (646) 960-0343 (international), Conference ID: 4200408, or live webcast on SouthStateBank.com[21](index=21&type=chunk) [About SouthState Corporation](index=9&type=section&id=About%20SouthState%20Corporation) SouthState is a financial services company headquartered in Winter Haven, Florida, providing consumer, commercial, mortgage, and wealth management solutions across multiple states and through its correspondent banking division - **SouthState Corporation is a financial services company based in Winter Haven, Florida**[22](index=22&type=chunk) - **SouthState Bank, N.A., offers consumer, commercial, mortgage, and wealth management solutions to over one million customers** in Florida, Alabama, Georgia, the Carolinas, Virginia, Texas, and Colorado[22](index=22&type=chunk) - **The Bank also serves clients nationwide through its correspondent banking division**[22](index=22&type=chunk) [Non-GAAP Measures Reconciliation](index=9&type=section&id=Non-GAAP%20Measures%20Reconciliation) This section provides reconciliations of various non-GAAP financial measures, including adjusted net income, EPS, return on assets, return on equity, efficiency ratio, and tangible book value, to their most directly comparable GAAP measures, highlighting operational performance and capital strength [PPNR (Non-GAAP) Reconciliation](index=9&type=section&id=PPNR%20%28Non-GAAP%29%20Reconciliation) The Pre-Provision Net Revenue (PPNR) for Q2 2025 was $314.08 million, an increase from $289.35 million in Q1 2025, reflecting improved operational profitability before credit loss provisions PPNR (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :---------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Net income (GAAP) | $215,224 | $89,080 | $144,178 | $143,179 | $132,370 | | Provision (recovery) for credit losses | $7,505 | $100,562 | $6,371 | $(6,971) | $3,889 | | Income tax provision | $66,975 | $26,586 | $43,166 | $43,359 | $40,478 | | Merger, branch consolidation, severance related and other expense | $24,379 | $68,006 | $6,531 | $3,304 | $5,785 | | Pre-provision net revenue (PPNR) (Non-GAAP) | $314,083 | $289,347 | $199,675 | $182,871 | $183,141 | [Net Interest Margin (NIM), TE (Non-GAAP) Reconciliation](index=9&type=section&id=Net%20Interest%20Margin%20%28NIM%29%2C%20TE%20%28Non-GAAP%29%20Reconciliation) The tax-equivalent Net Interest Margin (NIM, TE) for Q2 2025 was 4.02%, an improvement from 3.85% in Q1 2025, indicating enhanced profitability from interest-earning assets Net Interest Margin (NIM), TE (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :---------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Net interest income (GAAP) | $577,948 | $544,547 | $369,779 | $351,480 | $350,259 | | Total average interest-earning assets | $57,710,001 | $57,497,453 | $42,295,376 | $41,223,980 | $41,011,662 | | NIM, non-tax equivalent | 4.02 % | 3.84 % | 3.48 % | 3.39 % | 3.43 % | | Tax equivalent adjustment | $672 | $784 | $547 | $486 | $631 | | Net interest income, tax equivalent (Non-GAAP) | $578,620 | $545,331 | $370,326 | $351,966 | $350,890 | | NIM, TE (Non-GAAP) | 4.02 % | 3.85 % | 3.48 % | 3.40 % | 3.44 % | [Adjusted Net Income (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20%28Non-GAAP%29%20Reconciliation) Adjusted Net Income for Q2 2025 was $233.82 million, significantly higher than the GAAP net income, after excluding various non-recurring or non-operational items such as merger-related expenses and securities losses/gains Adjusted Net Income (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Net income (GAAP) | $215,224 | $89,080 | $144,178 | $143,179 | $132,370 | | Securities losses, net of tax | — | $178,639 | $38 | — | — | | Gain on sale leaseback, net of transaction costs and tax | — | $(179,004) | — | — | — | | PCL - Non-PCD loans and UFC, net of tax | — | $71,892 | — | — | — | | Merger, branch consolidation, severance related and other expense, net of tax | $18,593 | $53,094 | $5,026 | $2,536 | $4,430 | | Deferred tax asset remeasurement | — | $5,581 | — | — | — | | FDIC special assessment, net of tax | — | — | $(478) | — | $474 | | Adjusted net income (non-GAAP) | $233,817 | $219,282 | $148,764 | $145,715 | $137,274 | [Adjusted Net Income per Common Share - Basic (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20per%20Common%20Share%20-%20Basic%20%28Non-GAAP%29%20Reconciliation) Adjusted basic EPS for Q2 2025 was $2.30, reflecting a more normalized view of earnings by excluding specific non-recurring items Adjusted Net Income per Common Share - Basic (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Earnings per common share - Basic (GAAP) | $2.12 | $0.88 | $1.89 | $1.88 | $1.74 | | Effect to adjust for securities losses, net of tax | — | $1.76 | $0.00 | — | — | | Effect to adjust for gain on sale leaseback, net of transaction costs and tax | — | $(1.77) | — | — | — | | Effect to adjust for PCL - Non-PCD loans and UFC, net of tax | — | $0.71 | — | — | — | | Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax | $0.18 | $0.52 | $0.07 | $0.03 | $0.05 | | Effect to adjust for deferred tax asset remeasurement | — | $0.06 | — | — | — | | Effect to adjust for FDIC special assessment, net of tax | — | — | $(0.01) | — | $0.01 | | Adjusted net income per common share - Basic (non-GAAP) | $2.30 | $2.16 | $1.95 | $1.91 | $1.80 | [Adjusted Net Income per Common Share - Diluted (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20per%20Common%20Share%20-%20Diluted%20%28Non-GAAP%29%20Reconciliation) Adjusted diluted EPS for Q2 2025 was $2.30, providing a clearer picture of per-share earnings by excluding specific non-GAAP adjustments Adjusted Net Income per Common Share - Diluted (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Earnings per common share - Diluted (GAAP) | $2.11 | $0.87 | $1.87 | $1.86 | $1.73 | | Effect to adjust for securities losses, net of tax | — | $1.76 | $0.00 | — | — | | Effect to adjust for gain on sale leaseback, net of transaction costs and tax | — | $(1.76) | — | — | — | | Effect to adjust for PCL - Non-PCD loans and UFC, net of tax | — | $0.71 | — | — | — | | Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax | $0.19 | $0.52 | $0.07 | $0.04 | $0.05 | | Effect to adjust for deferred tax remeasurement | — | $0.05 | — | — | — | | Effect to adjust for FDIC special assessment, net of tax | — | — | $(0.01) | — | $0.01 | | Adjusted net income per common share - Diluted (non-GAAP) | $2.30 | $2.15 | $1.93 | $1.90 | $1.79 | [Adjusted Return on Average Assets (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Return%20on%20Average%20Assets%20%28Non-GAAP%29%20Reconciliation) The adjusted return on average assets (ROAA) for Q2 2025 was 1.45%, demonstrating improved asset utilization and profitability after accounting for non-GAAP adjustments Adjusted Return on Average Assets (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Return on average assets (GAAP) | 1.34 % | 0.56 % | 1.23 % | 1.25 % | 1.17 % | | Effect to adjust for securities losses, net of tax | — % | 1.13 % | 0.00 % | — % | — % | | Effect to adjust for gain on sale leaseback, net of transaction costs and tax | — % | (1.13)% | — % | — % | — % | | Effect to adjust for PCL - Non-PCD loans and UFC, net of tax | — % | 0.45 % | — % | — % | — % | | Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax | 0.11 % | 0.33 % | 0.04 % | 0.02 % | 0.05 % | | Effect to adjust for deferred tax remeasurement | — % | 0.04 % | — % | — % | — % | | Effect to adjust for FDIC special assessment, net of tax | — % | — % | (0.00)% | — % | 0.00 % | | Adjusted return on average assets (non-GAAP) | 1.45 % | 1.38 % | 1.27 % | 1.27 % | 1.22 % | [Adjusted Return on Average Common Equity (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Return%20on%20Average%20Common%20Equity%20%28Non-GAAP%29%20Reconciliation) The adjusted return on average common equity for Q2 2025 was 10.79%, indicating strong profitability relative to common equity after non-GAAP adjustments Adjusted Return on Average Common Equity (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Return on average common equity (GAAP) | 9.93 % | 4.29 % | 9.72 % | 9.91 % | 9.58 % | | Effect to adjust for securities losses, net of tax | — % | 8.61 % | 0.00 % | — % | — % | | Effect to adjust for gain on sale leaseback, net of transaction costs and tax | — % | (8.63)% | — % | — % | — % | | Effect to adjust for PCL - Non-PCD loans and UFC, net of tax | — % | 3.46 % | — % | — % | — % | | Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax | 0.86 % | 2.56 % | 0.34 % | 0.17 % | 0.33 % | | Effect to adjust for deferred tax remeasurement | — % | 0.27 % | — % | — % | — % | | Effect to adjust for FDIC special assessment, net of tax | — % | — % | (0.03)% | — % | 0.03 % | | Adjusted return on average common equity (non-GAAP) | 10.79 % | 10.56 % | 10.03 % | 10.08 % | 9.94 % | [Return on Average Common Tangible Equity (Non-GAAP) Reconciliation](index=10&type=section&id=Return%20on%20Average%20Common%20Tangible%20Equity%20%28Non-GAAP%29%20Reconciliation) The return on average tangible common equity for Q2 2025 was 18.17%, reflecting the company's profitability relative to its tangible common equity Return on Average Common Tangible Equity (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Return on average common equity (GAAP) | 9.93 % | 4.29 % | 9.72 % | 9.91 % | 9.58 % | | Effect to adjust for intangible assets | 8.24 % | 4.70 % | 5.37 % | 5.72 % | 5.91 % | | Return on average tangible equity (non-GAAP) | 18.17 % | 8.99 % | 15.09 % | 15.63 % | 15.49 % | [Adjusted Return on Average Common Tangible Equity (Non-GAAP) Reconciliation](index=10&type=section&id=Adjusted%20Return%20on%20Average%20Common%20Tangible%20Equity%20%28Non-GAAP%29%20Reconciliation) The adjusted return on average tangible common equity for Q2 2025 was 19.61%, providing a comprehensive view of profitability by excluding both non-GAAP adjustments and the impact of intangible assets Adjusted Return on Average Common Tangible Equity (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Return on average common equity (GAAP) | 9.93 % | 4.29 % | 9.72 % | 9.91 % | 9.58 % | | Effect to adjust for securities losses, net of tax | — % | 8.61 % | 0.00 % | — % | — % | | Effect to adjust for gain on sale leaseback, net of transaction costs and tax | — % | (8.63)% | — % | — % | — % | | Effect to adjust for PCL - Non-PCD loans and UFC, net of tax | — % | 3.46 % | — % | — % | — % | | Effect to adjust for merger, branch consolidation, severance related and other expense, net of tax | 0.86 % | 2.56 % | 0.34 % | 0.18 % | 0.32 % | | Effect to adjust for deferred tax remeasurement | — % | 0.27 % | — % | — % | — % | | Effect to adjust for FDIC special assessment, net of tax | — % | — % | (0.03)% | — % | 0.03 % | | Effect to adjust for intangible assets, net of tax | 8.82 % | 9.29 % | 5.53 % | 5.80 % | 6.12 % | | Adjusted return on average common tangible equity (non-GAAP) | 19.61 % | 19.85 % | 15.56 % | 15.89 % | 16.05 % | [Adjusted Efficiency Ratio (Non-GAAP) Reconciliation](index=11&type=section&id=Adjusted%20Efficiency%20Ratio%20%28Non-GAAP%29%20Reconciliation) The adjusted efficiency ratio improved to 49.09% in Q2 2025 from 50.24% in Q1 2025, indicating better cost management relative to adjusted revenue Adjusted Efficiency Ratio (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Efficiency ratio | 52.75 % | 60.97 % | 55.73 % | 56.58 % | 57.03 % | | Effect to adjust for securities losses | — % | (13.35)% | — % | — % | — % | | Effect to adjust for gain on sale leaseback, net of transaction costs | — % | 13.39 % | — % | — % | — % | | Effect to adjust for merger, branch consolidation, severance related and other expense | (3.66)% | (10.77)% | (1.45)% | (0.78)% | (1.36)% | | Effect to adjust for FDIC special assessment | — % | — % | 0.14 % | — % | (0.15)% | | Adjusted efficiency ratio | 49.09 % | 50.24 % | 54.42 % | 55.80 % | 55.52 % | [Tangible Book Value Per Common Share (Non-GAAP) Reconciliation](index=11&type=section&id=Tangible%20Book%20Value%20Per%20Common%20Share%20%28Non-GAAP%29%20Reconciliation) Tangible book value per common share increased to $51.96 in Q2 2025 from $50.07 in Q1 2025, reflecting growth in tangible equity Tangible Book Value Per Common Share (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Book value per common share (GAAP) | $86.71 | $84.99 | $77.18 | $77.42 | $74.16 | | Effect to adjust for intangible assets | $(34.75) | $(34.92) | $(26.07) | $(26.16) | $(26.26) | | Tangible book value per common share (non-GAAP) | $51.96 | $50.07 | $51.11 | $51.26 | $47.90 | [Tangible Equity-to-Tangible Assets (Non-GAAP) Reconciliation](index=11&type=section&id=Tangible%20Equity-to-Tangible%20Assets%20%28Non-GAAP%29%20Reconciliation) The tangible equity-to-tangible assets ratio for Q2 2025 was 8.46%, indicating a solid capital position relative to tangible assets Tangible Equity-to-Tangible Assets (Non-GAAP) Reconciliation | Metric | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Equity-to-assets (GAAP) | 13.36 % | 13.24 % | 12.70 % | 12.81 % | 12.42 % | | Effect to adjust for intangible assets | (4.90)% | (4.99)% | (3.91)% | (3.94)% | (4.03)% | | Tangible equity-to-tangible assets (non-GAAP) | 8.46 % | 8.25 % | 8.79 % | 8.87 % | 8.39 % | [Cautionary Statement Regarding Forward Looking Statements](index=12&type=section&id=Cautionary%20Statement%20Regarding%20Forward%20Looking%20Statements) This section warns readers that statements in the communication that are not historical facts are forward-looking and subject to various risks and uncertainties, which could cause actual results to differ materially from expectations [Cautionary Statement Regarding Forward Looking Statements](index=12&type=section&id=Cautionary%20Statement%20Regarding%20Forward%20Looking%20Statements) This section warns readers that statements in the communication that are not historical facts are forward-looking and subject to various risks and uncertainties. These risks include economic volatility, integration challenges from mergers, credit risks, interest rate fluctuations, liquidity risks, competition, regulatory changes, cybersecurity threats, and catastrophic events, which could cause actual results to differ materially from expectations - **Forward-looking statements are based on management's beliefs, assumptions, expectations, estimates, and projections, and are subject to risks and uncertainties**[29](index=29&type=chunk) - **Key risks include economic volatility**, **integration risks from mergers**, **credit risks**, **interest rate risk**, **liquidity risk**, **competition**, **regulatory changes**, **cybersecurity risk**, and **catastrophic events**, which could cause actual results to differ materially from expectations[30](index=30&type=chunk) - **Readers are cautioned against undue reliance on forward-looking statements**, which speak only as of their date and are not subject to updates unless required by federal securities laws[31](index=31&type=chunk)